PLANNING FOR RETIREMENT AVOIDS OVERSPEND

A fifth of respondents to a survey by PensionBee have consistently spent more than they expected to during their retirement so far. Moreover, 11% of the over-55s surveyed also said their overspending had occurred early on in their retirement.

So, what were the biggest reasons behind the overspend? Cost of living (28%), housing costs, including mortgage payments and maintenance costs (21%), travel (14%), supporting family (7%) and leisure (6%).

Having worked hard all your life, the feeling of emotional and financial freedom that often accompanies retirement is enough to lead some retirees to spend more than they should. With reserves to draw upon and plenty of free time, it can prove a challenging financial situation for those who are less strategic with their money.

PLANNING FOR FUTURE RETIREMENT EXPENSES

To avoid a retirement overspend, we can work with you to understand what your spending needs might be and develop a plan that supports your desired lifestyle.

Planning ahead makes it easier to be accountable for your spending decisions. If certain expenses weren't originally budgeted into your retirement plan, you may be more likely to scrutinise them. Having an expert financial adviser to monitor and review your plan also means that you can understand the impact of any overspend.

At least with a plan, you can make informed decisions about how much you spend -- and whether that's sustainable.

The key to a great retirement plan blends art with science. Many people focus on how much income they can generate. Our experts look at expenditure instead. Your optimal strategy will meet the cost of your desired retirement as efficiently as possible. That means understanding you before finding the right pensions, investments, and other financial products.

Contact us today for a free consultation.

KEY TAKEAWAYS

A large proportion of people surveyed have spent more than expected in retirement.

Planning for retirement with a professional makes in less likely that you'll encounter unexpected costs. Where they do happen, you'll be in a better position to understand the impact of overspending.

Blackmount Private Wealth can help you plan for a successful retirement.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.